The Swiss Central Bank Intervened In The &Nbsp Market; The Swiss Franc Collapsed And The Euro Rebounded.

yesterday

The euro was hard pressed by the SNB yesterday after falling to a half month low against the US dollar.

The Swiss central bank intervened in the foreign exchange market

Last week, the election of German Chancellor Merkel's political party failed, reflecting the growing discontent among the German people in providing more assistance to other euro zone countries.

Investors are worried that the German government will not support the euro zone countries that are trapped in financial difficulties.

Yesterday's lowest 1.4037, a half month low, then rebounded on the Swiss central bank's theory of prophecy.

The Swiss central bank announced yesterday that it would no longer tolerate the exchange rate of the euro against the Swiss Franc below 1.2, and said that in order to achieve the intended goal, foreign currencies would not be limited.

This means that the long awaited Swiss central bank's policy of pegging to the euro has finally come true, and it has set off waves in the foreign exchange market.

After the news, the euro rose by about 1000 points, or 10%, against the Swiss Franc; the US dollar rose 725 points to 0.8562 against the Swiss franc, a three month high of more than 9%; the euro rose by 228 basis points to the top of 1.41, and the international gold price plunged to 1859 U.S. dollars / ounce from the historical high point of 1920.5 dollars / ounce.

The US dollar index hit a record high of 75.5 yesterday, the highest since July 13th.

Since the beginning of this year, the US dollar has fallen by 16% against the Swiss franc. Investors are worried that the spread of the European debt crisis will jeopardize the global economic outlook, and funds are pouring into the Swiss Franc to avoid risks.

When the US rating was downgraded in August 9th, the US dollar fell to a record low of 0.7067 against the Swiss franc, with a 5.5% decline in the day.

The Swiss Franc has to intervene in the Swiss franc's frequent appreciation to curb domestic economic growth.

The euro fell to 1.39 against the US dollar in the short term.

Hang Seng Bank foreign exchange analysts predict that the euro will face a lot of bad profits against the US dollar in the short term.

Late last week, the European Union and the International Monetary Fund (IMF) delegation extended their visit to Greece, where Greece received a new bailout time or delay.

At the same time, Italy is still struggling with a new round of fiscal deficit reduction. Investors are worried that the failure to pass the plan can affect the EU bailout, and the crisis will soon spread to Italy, the third largest economy in the euro zone.

According to France's Societe Generale, in terms of technology, if the euro falls below 1.39 against the US dollar, the next step will drop to $1.30 and may fall below that support position.

JanLambregts, an economist at Holland Cooperation Bank, told the daily economic news that the euro was 1.39 against the US dollar in the 3 month target price. However, with the European debt crisis in doubt, the target price of euro against the US dollar was 1.48 in 12 months.

JanLambregts claims that the euro is trapped in the shadow of sovereign debt. The US dollar is currently the weakest currency in G10 countries, and the euro and the US dollar are fragile, making the euro dollar exchange rate relatively stable at 1.4.

"The slow economic recovery and the lack of cooperative attitude between the parties suggest that the United States needs to solve the deficit problem for a long time, and the performance of the standard & Poor's index also reflects this expectation.

The zero interest rate policy will remain at least until mid 2013, and the US dollar is expected to remain strong until 2012. "